Businessman receives 13-year prison sentence for state asset management violations

Dinh Truong Chinh, former chairman of Housing Development and Trading JSC (HTDC), has been sentenced to 13 years in prison for “violations of regulations on management and use of state assets, causing loss and waste.”

He was also ordered to return VND970 billion ($36.74 million) in illicit gains from the acquisition of a prime land plot in downtown Ho Chi Minh City.

The HCMC People’s Court on Thursday handed down first-instance verdicts for three defendants involved in the case at Southern Food Corporation (Vinafood II). The case concerned four “golden" land plots in the city center, causing state losses of VND970 billion.

Chinh received 13 years in prison and must return VND970 billion to the state budget. Huynh The Nang, former general director of Vinafood II, was sentenced to 9.5 years, while Nguyen Tho Tri, former deputy general director, received six years.

The court affirmed that the indictment by the People’s Procuracy was accurate and that the defendants’ actions were especially serious, undermining the management and use of state assets. The sentences aimed both to punish and to serve as a deterrent.

According to the indictment, Vinafood II, a 100% state-owned company, was directly assigned to manage and use properties at 33 Nguyen Du street and 34, 36, 42 Chu Manh Trinh street in Saigon ward (the former Ben Nghe ward, former District 1).

In 2010, after completing financial obligations, Vinafood II was granted land use rights and property ownership certificates for these sites. Facing losses around 2014-2015, the company sought to sell the four sites to recover capital, repay debts, and support business operations.

Learning of this plan, Chinh, representing Viet Hen Real Estate Co., approached Vinafood II to acquire the land. The company’s council of members then valued the assets at VND730 billion ($27.65 million) and approved their transfer to Viet Han. Both sides then established Viet Han Saigon Co. to pursue the approved investment project.

In reality, this company was actually created to legitimize the transfer of land-use rights: Vinafood II transferred VND570 billion ($21.59 million) of land value directly, and the remaining VND160 billion through divesting a 20% capital stake.

By late December 2015, Huynh The Nang, representing Vinafood II, signed the land-use rights transfer with Chinh. He later sold the entire VND160 billion ($6.06 million) stake in Viet Han Saigon to Chinh without authorization from relevant authorities. The land was sold to Viet Han without any auction.

In January 2016, Chinh, on behalf of Viet Han, sold 99% of Viet Han Saigon to his cousin Hoang Ngoc Cam Hong, a Canadian national, for VND792 billion ($29.99 million) - the same as the company’s registered charter capital.

On February 2, 2016, Hong transferred her 99% stake in Viet Han Saigon to Maa Dong Real Estate JSC, led by chairwoman Nguyen Thi Phi Oanh, for VND1,683 billion ($63.74 million).

Investigators concluded that Hong acted only as a middleman to conceal Chinh’s transfer of the land to Mua Dong. After the deal, the proceeds were funneled back into Chinh’s accounts, giving him illicit profits of VND970 billion ($36.74 million).

Meanwhile, Nguyen Tho Tri was found to have supported the process from start to finish, assisting Huynh The Nang in seeking approvals, arranging capital contributions, divestments, and land transfers.